Shiyue Daotian Group (9676) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose 7.4% YoY to RMB4,867.0m; gross profit fell 20.6% to RMB618.7m as higher raw-material costs compressed margins.

• Net loss narrowed to RMB64.9m from RMB564.2m; adjusted net profit declined 55.4% to RMB162.2m.

Financial highlights

• Revenue was RMB4,867.0m versus RMB4,532.9m in 2022; operating profit was RMB144.1m versus an operating loss of RMB375.8m.

• Gross profit was RMB618.7m, down 20.6% YoY; gross margin contracted to 12.7% from 17.2%.

• Net loss was RMB64.9m versus RMB564.2m; loss before tax was RMB58.8m versus RMB558.3m.

• Adjusted net profit, excluding share-based payments, changes in investor financial instruments and listing expenses, was RMB162.2m, down 55.4% YoY.

• Basic and diluted loss per share were both RMB0.08, versus RMB0.60 in 2022.

Outlook and guidance

• Strategy centers on expanding brands, differentiated product ranges, packaging and channels, deepening the multichannel ecosystem, and strengthening channel management.

• Plans include expanding into new channels and business areas and reinforcing procurement, production, inspection and storage capabilities in key grain-producing regions.